I am sure you must have accessed Airport Lounges. If not, you must have seen a large queue of people waiting to enter airport lounges.
Most of the time, company facilitating airport lounge access is none other than Dreamfolks Services.
Dreamfolks is the market leader in the airport lounge aggregation industry in India and facilitates access to airport related services like – lounges, food and beverages, spa and wellness, etc.
After surging to 800 odd levels, the stock is down 65% + to around 260 odd levels now. Can it be a good contra bet?
Below, we have shared notes from the Q4 FY 25 concall of the company to understand management’s views regarding the outlook for the business.
Before that, in the month of April 2025 and May 2025, we have released the following new stock recommendations:
- On 11th Apr’25, we released a new recommendation under “Insider Bets” subscription. You can read about it by clicking HERE
- On 16th Apr’25, we released a new Special situation opportunity for our Alpha + members. You can read about it by clicking HERE
- On 6th May’25, we released a new medium/long term investment recommendation for our Alpha + members. You can read about it by clicking HERE
Dreamfolks Services – Q4 FY 25 concall notes
Financial Performance (FY 25):
- Revenue: Rs 1,292 crore (+14% YoY vs. Rs 1,135 crore in FY24)
- Growth outpaced domestic air traffic & credit card volumes (+7.5-8%)
- Gross Margin: 11.6% (within 11-13% guidance)
- Adjusted EBITDA: Rs 102 crore (margin 7.9%, within 7-9% guidance)
- Cash & equivalents: Rs 148 crore (vs. Rs 101 crore)
- Short-term margin impact from spend-based lounge access and manpower expansion to build long-term growth foundation
Company Strategy & Outlook:
- FY25: Consolidation due to industry structural changes
- Banks moved to spend-based lounge access; over 10 banks adopted this via Dreamfolks’ tech platform
- Added non-banking clients, new enterprise clients (e.g., MakeMyTrip, Amazon)
- New services (golf, meet & greet, railway lounges) contributed 7% of revenue
- Vision for Next 5 Years
- Scale new services to 1/3 of revenues (from 7% now)
- More than double revenue in 5 years, targeting 15%+ CAGR & higher margins
- Focus on India airport lounges + high-margin, high-potential services
- New Service Expansion:
- “Coffee at Malls” at 83 outlets (Costa, Tim Hortons) to drive usage in Tier 2/3 cities
- Strong presence in members-only clubs (3,000 clubs globally), 800+ airport lounges, and domestic lounges (75 airport lounges, 14 railway lounges)
- Added 100+ new lounges & F&B outlets via Plaza Premium partnership
FY26 Outlook:
- Confident of 15%+ CAGR and higher profitability in coming years
- Focus: Diversify beyond lounges, target enterprise clients & global expansion
- Employee investment & strong tech platform seen as foundation for future growth
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Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. The securities quoted are for illustration only and are not recommendatory.
Ekansh Mittal
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